China Firmly Opposes New US Sanctions on Chinese Firms in the Name of Support for Russia

TMTPost-- China slams new U.S. sanctions on entities including a dozen of Chinese companies that are alleged to support for Russia’s war against Ukraine.

Credit：US Department of Treasury

The Chinese side firmly opposes the U.S. illegal unilateral sanctions,Liu Pengyu, spokesperson for China's embassy in Washington commented on actions the Biden administration announced on Wednesday. There are almost 300 targets being sanctioned by both the U.S. Treasury Department and the Department of State, include sanctions on dozens of actors that are accused of enabling Russia to acquire desperately needed technology and equipment from abroad.

"Normal economic and trade interactionsbetween China and Russiaare in line with World Trade Organization (WTO)rules and market principles. They do nottarget at third parties and should not come underinterferenceor coercion fromany third parties," Liusaid, "We will continue to safeguard the legitimate and lawful rights and interests of Chinese companies."

On Ukraine, China has always upheld an objective and just positionand worked actively to promote talks for peace and a political settlement, Liu reiterated that stance that Chinese government has stressed. Liu notedthe government oversees the export of dual-use articles in accordance with the laws and regulations. "China is neither the one that created the conflict nor a party to it, and has never provided lethal weapons or equipment to any party. We never fan the flames or seek selfish gains, and we will certainly not accept being the scapegoat," the spokesperson said.

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The U.S. Department of the Treasury said, in its statement Wednesday, that the United States is particularly concerned about entities based in China and other third countries that provide critical inputs to Russia’s military-industrial base, and such support enables Russia to continue its war against Ukraine and poses a significant threat to international security.

"Treasury has consistently warned that companies will face significant consequences for providing material support for Russia’s war, and the U.S. is imposing them today on almost 300 targets," said Secretary of the Treasury Janet Yellenat the statement. She added that the new sanctions will further disrupt and degrade Russia’s war efforts by going after its military industrial base and the evasion networks that help supply it.

Out of all the targets, 20 companies are based in mainland China and Hong Kong. The Treasury statement said new sanctions are imposed on targets located in Russia and five third countries including China, Azerbaijan, Belgium, Slovakia, Turkey and the United Arab Emirates (UAE), that enable Russia to acquire desperately-needed technology and equipment from abroad.

The Treasury Departmentnamed practices of some of Chinese companies. It said Tulun International Holding Limited (Tulun International), a Hong Kong-based procurement intermediary, represented itself as the end-user of, but ultimately resold Global Navigation Satellite Systems (GNSS) boards that were installed in Russian one-way attack unmanned aerial vehicles (UAVs) used by Russian military forces to attack Ukrainian targets, and shortly thereafter recovered in October and November 2023.Shenzhen-based Juhang Aviation Technology Shenzhen Co, Ltd. (Juhang Aviation), was said to export 94 shipments of export-controlled items with UAV and other military applications to Russia-based TSK Vektor OOO (TSK Vektor) between August 5, 2022 and December 31, 2023. TSK Vektor was blacklisted for providing material support to IEMZ Kupol, which produces one-way attack UAVs for the Russian Ministry of Defense. Juhang Aviation has also exported dual-use items with UAV and other military applications, such as integrated circuits, to LLC Testkomplekt, another Russian company that was placed on the U.S. blacklist.

Wednesday’s actions by the U.S. Treasury Department are deemed as one of the most wide-ranging sanctions against Chinese companies so far in U.S. government’s sanctions on Russia. The Biden administration took the step days after U.S. Secretary of State Antonny Blinken visited China and met with Chinese Foreign Minister Wang Yi during his trip. Blinken said a key focus of his trip is to stress to Beijing that the U.S. opposition to China’s support through trade of the Russian economy and its defense industrial base.

It is hypocritical and highly irresponsible for the United States to falsely accuse China of Chinese normal trade and economic exchanges with Russia, while passing legislation to provide massive aid to Ukraine, Chinese Foreign Ministry spokesperson Wang Wenbin commented on Blinken’s focus regarding bilateral trade between China and Russia last Friday.

“China did not create the Ukraine crisis, nor are we a party to it. China’s position on Ukraine has been just and objective. We have actively promoted talks for peace. Shifting the blame to China will not end the crisis, nor will it help those who find themselves in a difficult position on Ukraine,”Wang said. He urged the U.S. to stop scapegoating China and make real efforts to find a political end to the Ukraine crisis. China will stay committed to peace, dialogue, and justice, and play a constructive and responsible role to put an early end to the crisis, while firmly upholding its legitimate and lawful rights and interests, Wang said.